The most common and most likely answer to this crossword clue is the 9 letter word ANTHOLOGY
I've seen this crossword clue in The Daily Telegraph
A
N
T
H
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L
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More clues leading to the result ANTHOLOGY
Buddy explains!

The straight part
We know that "Literary collection" is the straight/definition part of the clue. The straight part is often a synonym or definition, in this case literary collection = anthology.The cryptic/wordplay part
In cryptic crossword there's often an wordplay/cryptic part as well.This part involves a more complex hint, such as an anagram, homophone, hidden word, etc.
Sadly, We don't have an explanation for this specific crossword clue yet.
What does ANTHOLOGY mean?
ANTHOLOGY noun- A collection of literary works, such as poems or short stories, especially a collection from various authors.
- Of a work or series containing various stories with no direct relation to one another.
- (by extension) An assortment of things.
- The study of flowers.